Showing posts with label GD. Show all posts
Showing posts with label GD. Show all posts

Tuesday, April 5, 2016

MORNING CALL 4/5

MORNING CALL

OVERNIGHT MARKETS AND NEWS
Jun E-mini S&Ps (ESM16 -0.66%) are down -0.78% and European stocks are down -2.15% at a 5-week low on concern that global economic growth is faltering. German Feb factory orders unexpectedly fell by the most in 6 months and IMF Managing Director Lagarde said the world economy's outlook has dimmed. A -0.22% fall in crude oil prices to a 1-month low has also undercut energy producing stocks. The slide in stocks has boosted demand for government debt as the yield on the 10-year German bund has tumbled to an 11-1/4 month low of 0.081%. Asian stocks settled mostly lower: Japan-2.42%, Hong Kong -1.57%, China up+1.45%, Taiwan closed for holiday, Australia -1.42%, Singapore -1.21%, South Korea -1.02%, India -2.03%. The plunge in USD/JPY to a 17-month low fueled selling in Japanese exporters as Japan's Nikkei Stock Index fell to a 1-1/2 month low. Chinese stocks bucked the trend as the Shanghai Composite rallied to a 2-1/2 month high on optimism that government efforts to spur economic growth are kicking in.
The dollar index (DXY00 +0.28%) is up +0.21%. EUR/USD (^EURUSD) is down -0.25%. USD/JPY (^USDJPY) is down -0.92% to a 17-month low.
Jun T-note prices (ZNM16 +0.31%) are up +15 ticks at a 5-week high on carryover support from a rally in German bunds to an 11-1/4 month low.
IMF Managing Director Lagarde said the world economy's outlook has dimmed over the last 6 months, exacerbated by China's slowdown, lower commodity prices and the risk of financial tightening in many countries. This suggests the IMF will downgrade its growth forecast when it releases its updated World Economic Outlook on Apr 12.
Chicago Fed President Evans said "I believe it will be appropriate to make two more rate hike this year and then follow a very gradual path of rate increases thereafter." Evans projects U.S. 2016 economic growth at 2.0-2.5% and that the U.S. consumer is the "linchpin" behind the outlook.
German Feb factory orders unexpectedly fell -1.2% m/m, weaker than expectations of +0.3% m/m and the biggest decline in 6 months.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) Key U.S. reports today include: (1) Chicago Fed President Charles Evans' speech on the economy and monetary policy at the Credit Suisse Asian Investment Conference in Hong Kong, (2) Feb U.S. trade balance (expected -$46.2 billion, Jan -$45.68 billion), (3) final-Mar Markit services PMI (expected +0.2 to 51.2, prelim-Mar +1.3 to 51.0), (4) Mar ISM non-manufacturing PMI (expected +0.8 to 54.2, Feb -0.1 to 53.4), and (5) Feb JOLTS job openings (expected -53,000 to 5.488 million, Jan +260,000 to 5.541 million).
There are 2 of the Russell 1000 companies that report earnings today: Darden Restaurants (consensus $1.20), Walgreens (1.28).
U.S. IPO's scheduled to price today: none.
Equity conferences during the remainder of this week include: Cowen & Co Retail & Luxury Day on Thu
OVERNIGHT U.S. STOCK MOVERS
Allergan (AGN +3.53%) dropped 22% in pre-market trading after the U.S. Treasury Department said it will introduce regulations to make it more difficult to engage in a tax strategy known as "earnings stripping," which enables U.S. subsidiaries to curb their tax bills as interest payments to their foreign parent companies are tax deductible.
Tesla (TSLA +3.96%) slipped 3% in pre-market trading after it reported Q1 deliveries of 14,820 vehicles, below consensus of 16,000.
Fifth Third Bancorp (FITB -0.30%) was downgraded to 'Market Perform' from 'Outperform' at BMO Capital Markets.
Hormel Foods (HRL -0.82%) was downgraded to 'Underweight' from 'Hold' at BB&T Capital Markets.
Northrop Grumman (NOC +0.43%) was rated a new 'Buy' at Guggenheim with a price target of $226.
General Dynamics (GD -0.49%) was rated a new 'Buy' at Guggenheim with a price target of $153.
Raytheon (RTN +0.80%) was rated a new 'Buy' at Guggenheim with a price target of $144.
Disney (DIS -0.39%) dropped 2% in pre-market trading after COO Thomas Staggs said he will step down next month.
Starbucks (SBUX -1.26%) was rated a new 'Buy' at Evercore ISI.
National Instruments (NATI -0.37%) slumped 10% in after-hours trading after it lowered guidance on Q1 adjusted EPS to 14 cents-15 cents, well below consensus of 23 cents.
Dominion Resources (D -1.07%) lost over 1% in after-hours trading after it announced a 10.2 million share secondary stock offering.
United Continental Holdings ({=UAL said it had reached tentative agreements on new contracts with its nearly 30,000 International Association of Machinists & Aerospace Workers (IAM) represented employees.
Dunkin' Brands (DNKN -0.19%) fell 2% in after-hours trading after it was initiated with a 'Sell" at Evercore ISI with a price target of $39.
Parsley Energy (PE -1.27%) dropped over 1% in after-hours trading after it announced a 16 million share offering of Class A common stock.
MARKET COMMENTS
June E-mini S&Ps (ESM16 -0.66%) this morning are down -16.00 points (-0.78%). Monday's closes: S&P 500 -0.32%, Dow Jones -0.31%, Nasdaq-0.45%. The S&P 500 on Monday closed lower on weakness in energy producers after the price of crude oil fell to a 1-month low and on hawkish comments from Boston Fed President Rosengren who said that predictions of just one interest-rate hike before Dec 31 are "unduly pessimistic." Stocks were also undercut by -0.8% decline in U.S. Feb factory orders ex-transportation, weaker than expectations of -0.5%.
June 10-year T-note prices (ZNM16 +0.31%) this morning are up +15 ticks at a 5-week high. Monday's closes: TYM6 +5.50, FVM6 +2.75. Jun T-notes Monday climbed to a 1-month high on the weaker-than-expected U.S. Feb factory orders report ex-transporation of -0.8% and on carryover support from a rally in German bunds to a 1-month high after ECB Executive Board member Praet said that the ECB will continue to act "forcefully" if needed to counter the risk of low inflation in the Eurozone becoming entrenched.
The dollar index (DXY00 +0.28%) this morning is up +0.197 (+0.21%). EUR/USD (^EURUSD) is down -0.0029 (-0.25%). USD/JPY (^USDJPY) is down-1.02 (-0.92%) at a 17-month low. Monday's closes: Dollar Index -0.109 (-0.12%), EUR/USD unch, USD/JPY -0.35 (-0318%). The dollar index in Monday closed lower on strength in the yen as USD/JPY fell to a 2-week low and on the weaker-than-expected decline in U.S. Feb factory orders ex-transportation.
May WTI crude oil (CLK16 +0.08%) is down -8 cents (-0.22%) at a fresh 1-month low. May gasoline (RBK16 +0.80%) is up +0.0096 (+0.70%). Monday's closes: CLK6 -1.33 (-3.62%), RBK6 -0.0256 (-1.83%). May crude oil and gasoline on Monday closed lower with May crude at a 1-month low. Crude oil prices saw continued weakness from reduced optimism about an OPEC oil production freeze after Saudi Arabia's deputy crown prince last Friday said that Saudi Arabia will not agree to freeze production at the upcoming April 17 meeting in Doha if Iran does not agree as well.
GLOBAL EVENT CALENDAR04/05/2016
US0100 ETChicago Fed President Charles Evans speaks on the economy and monetary policy at the Credit Suisse Asian Investment Conference in Hong Kong.
0830 ETFeb trade balance expected -$46.2 billion, Jan -$45.68 billion.
0945 ETFinal-Mar Markit services PMI expected +0.2 to 51.2, prelim-Mar +1.3 to 51.0. Final-Mar Markit composite PMI, prelim-Mar +1.1 to 51.1.
1000 ETMar ISM non-manufacturing PMI expected +0.8 to 54.2, Feb -0.1 to 53.4.
1000 ETFeb JOLTS job openings expected -53,000 to 5.488 million, Jan +260,000 to 5.541 million.
GER0200 ETGerman Feb factory orders expected +0.3% m/m and +2.2% y/y, Jan -0.1% m/m and +1.1% y/y.
0355 ETRevised German Mar Markit services PMI, preliminary +0.2 to 55.5.
EUR0400 ETRevised Eurozone Mar Markit composite PMI, preliminary +0.7 to 53.7.
0500 ETEurozone Feb retail sales expected unch m/m and +1.9% y/y, Jan +0.4% m/m and +2.0% y/y.
UK0430 ETUK Mar Markit/CIPS services PMI expected +0.8 to 53.5, Feb 52.7.
1901 ETUK Mar BRC shop price index, Feb -2.0% y/y.
U.S. STOCK CALENDAR04/05/2016

CompanyTickerTimeEvent DescriptionPeriodEstimate
Darden Restaurants IncDRI USBef-mktQ3 2016 Earnings ReleaseQ3 20161.199
Walgreens Boots Alliance IncWBA US7:00Q2 2016 Earnings ReleaseQ2 20161.28
Walgreens Boots Alliance IncWBA US8:30Q2 2016 Earnings CallQ2 2016
Darden Restaurants IncDRI US8:30Q3 2016 Earnings CallQ3 2016
NVIDIA CorpNVDA US14:30Investor DayY 2016
First Solar IncFSLR USAnalyst MeetingY 2016
Posted by Jim Van Meerten at No comments:
Labels: , , , , , , , , , , , , , , , , ,

Monday, March 28, 2016

MORNING CALL 3/25

MORNING CALL
OVERNIGHT MARKETS AND NEWS
Jun E-mini S&Ps (ESM16 +0.23%) are up +0.28% after last Friday's data showed the U.S. economy expanded more than expected in Q1. European markets are closed for Easter Monday. Also, May crude is up +0.51%, which is giving a boost to energy producing stocks. San Francisco Fed President Williams said that global developments were "the real issue" for policy makers as they decide on the pace of rate hikes. Asian stocks settled mixed: Japan +0.77%, Hong Kong and Australia closed for holiday, China -0.73%, Taiwan -0.17%, Singapore -0.60%, South Korea +0.07%, India -1.46%. China's Shanghai Composite fell to a 1-week low after the China Q1 Beige Book stated that the Chinese economy was still "emanating weakness." Japan's Nikkei Stock index rallied to a 1-week high after the Sankei newspaper reported that Prime Minister Abe plans to delay the scheduled April 2017 consumption-tax increase to 10% from 8%.
The dollar index (DXY00 +0.01%) is up +0.01% at a 1-week high. EUR/USD (^EURUSD) is down -0.04%. USD/JPY (^USDJPY) is up +0.42% at a 1-week high.
Jun T-note prices (ZNM16 -0.15%) are down -6 ticks.
San Francisco Fed President Williams said the U.S. economy is doing "quite well" and "the real issue is the global financial and economic developments" for policy makers as they deliberate on the pace of interest rate increases.
U.S. Q4 GDP was revised upward to 1.4% (q/q annualized) from 1.0% (q/q annualized), stronger than expectations of no change at 1.0%. Q4 personal consumption was revised upward to 2.4% from the previously reported 2.0%.
ECB Governing Council member Knot said that further expansion of the ECB asset purchase program will lead to increased tensions over the prohibition of monetary financing as quantitative easing leads to "higher risks of undesirable side effects like bubbles, an unhealthy search for yield, a rolling over of problematic loans, increasing wealth inequality, and an addiction to low interest rates."
The Q1 China Beige Book, published by CBB International, stated that China's economy is still "emanating weakness" as "the data show that firms first stopped borrowing, then cut spending, and our now becoming allergic to hiring." Also, revenue growth steadied, capital expenditure fell, job growth slid to a 4-year low and retail outperformed business spending.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) Feb personal spending (expected +0.1%, Jan +0.5%) and Feb personal income (expected +0.1%, Jan +0.5%), (2) Feb PCE deflator (expected -0.1% m/m and +1.0% y/y, Jan +0.1% m/m and +1.3% y/y) and Feb core PCE deflator (expected +0.2% m/m and +1.8% y/y, Jan +0.3% m/m and +1.7% y/y), (3) Feb pending home sales (expected +1.1% m/m, Jan -2.5% m/m and -0.9% y/y), (4) Mar Dallas Fed manufacturing activity (expected +5.8 to -26.0, Feb +2.8 to -31.8), (5) the Treasury's auction of $26 billion of 2-year T-notes, (6) USDA weekly grain export inspections.
None of the Russell 1000 companies report earnings today.
U.S. IPO's scheduled to price today: none.
Equity conferences this week include: Barclays Global Cross-Asset Class Materials Conference on Tue, Hart Energy Energy Capital Conference on Tue, Jefferies Animal Health Summit on Thu, William Blair Cancer Immunotherapy A Long-Awaited Reality Conference on Thu.
OVERNIGHT U.S. STOCK MOVERS
Finish Line (FINL +0.69%) was upgraded to 'Buy' form 'Hold' at BB&T Capital Markets with a 12-month price target of $24.
Phillips 66 (PSX -0.07%) was rated a new 'Market Perform' at Cowen with a 12-month price target of $92.
Ingersoll-Rand (IR -0.21%) was downgraded to 'Neutral' from 'Buy' at Goldman Sachs.
Eagle Materials (EXP -0.45%) was upgraded to 'Buy' form 'Hold' at BB&T Capital Markets with a 12-month price target of $80.
Qualcomm (QCOM -0.25%) was downgraded to 'Equalweight' from 'Overweight' at Barclays.
Carmax (KMX +0.81%) was downgraded to 'Neutral' from 'Buy' at Sterne Agee CRT.
Parker-Hannifin (PH +0.30%) was downgraded to 'Sell' from 'Neutral' at Goldman Sachs with a price target of $92.
Ensco PLC (ESV +1.15%) was downgraded to 'Negative' from 'Neutral' at Susquehanna.
Hologic (HOLX +1.03%) will replace Pepco Holdings (POM unch) in the S&P 500 after the close of trading Tuesday, March 29.
Centene (CNC +1.69%) will replace Ensco PLC (ESV +1.15%) in the S&P 500 after the close of trading on Tuesday, March 29.
GameStop (GME -0.33%) slid 5% in after-hours trading after it said it sees Q1 revenue down -4% to -7%, weaker than estimates up 2%.
General Dynamics (GD -3.90%) was awarded a $549 million cost-plus-incentive-fee contract by the U.S. Defense Department for Stryker program supply.
The Wall Street Journal reported that Exxon-Mobile (XOM +0.27%) is in talks to buy a stake in the Mozambique natural gas project from Eni.
Turtle Beach (HEAR +7.34%) climbed nearly 2% in after-hours trading after it reported Q4 adjusted EPS of 8 cents, right on consensus, but reported Q4 revenue of $84.6 million, higher than consensus of $83.0 million.
MARKET COMMENTS
Jun E-mini S&Ps (ESM16 +0.23%) this morning are up +5.75 points (+0.28%). Thursday's closes: S&P 500 -0.04%, Dow Jones +0.08%, Nasdaq +0.07%. The S&P 500 on Thursday closed little changed. Stocks were undercut by the unexpected -1.1% decline in U.S. Feb capital goods orders non-defense ex-aircraft, weaker than expectations of +0.3%, which is negative for capital investment and undercuts Q1 GDP. In addition, mining stocks were weak after gold fell to a 1-month low and copper slid to a 2-week low. Stocks found some support from the U.S. weekly initial unemployment claims report of 265,000, slightly below expectations of 269,000, and a rally in energy producers after crude oil recovered nearly all of an early decline.
Jun 10-year T-notes (ZNM16 -0.15%) this morning are down -6 ticks. Thursday's closes: TYM6 -3.50, FVM6 -3.25. Jun T-notes on Thursday closed lower on lower-than-expected U.S. weekly jobless claims of 265,000 (vs expectations of 269,000) and on hawkish comments from St. Louis Fed President Bullard who said the next Fed rate increase "may not be far off." T-notes found support on reduced inflation expectations after the 10-year T-note break-even inflation expectations rate fell to a 1-week low.
The dollar index (DXY00 +0.01%) this morning is up +0.007 (+0.01%) at a 1-week high. EUR/USD (^EURUSD) is down -0.0005 (-0.04%). USD/JPY (^USDJPY) is up +0.47 (+0.42%) at a 1-week high. Thursday's closes: Dollar Index +0.096 (+0.10%), EUR/USD -0.0007 (-0.06%), USD/JPY +0.52 (+0.46%). The dollar index on Thursday climbed to a 1-week high and settled higher on St. Louis Fed President Bullard's hawkish comment suggesting that the Fed may be getting close to raising interest rates another notch.
May WTI crude (CLK16 +0.38%) this morning is up +20 cents (+0.51%) and May gasoline (RBK16 +0.50%) is up +0.0040 (+0.27%). Thursday's closes: CLK6 -0.33 (-0.83%), RBK6 +0.0142 (+0.96%). May crude and gasoline on Thursday settled mixed with May crude at a 1-week low. Crude oil prices were undercut by the rally in the dollar index to a 1-week high and by negative carryover from Wednesday’s EIA data showing a larger-than-expected +9.357 million bbl surge in weekly EIA crude inventories to a record high 532.5 million bbl. Gasoline received a boost from the prospects for strong refinery demand for gasoline as the crack spread climbed to a 1-week high.
GLOBAL EVENT CALENDAR03/28/2016
US0830 ETFeb personal spending expected +0.1%, Jan +0.5%. Feb personal income expected +0.1%, Jan +0.5%.
0830 ETFeb PCE deflator expected -0.1% m/m and +1.0% y/y, Jan +0.1% m/m and +1.3% y/y. Feb core PCE deflator expected +0.2% m/m and +1.8% y/y, Jan +0.3% m/m and +1.7% y/y.
1000 ETFeb pending home sales expected +1.1% m/m, Jan -2.5% m/m and -0.9% y/y.
1030 ETMar Dallas Fed manufacturing activity expected +5.8 to -26.0, Feb +2.8 to -31.8.
1100 ETUSDA weekly grain export inspections.
1300 ETTreasury auctions $26 billion of 2-year T-notes.
JPN1930 ETJapan Feb jobless rate expected unch at 3.2%. Feb job-to-applicant ratio expected +0.01 to 1.29, Jan 1.28.
1930 ETJapan Feb overall household spending expected -1.5% y/y, Jan -3.1% y/y.
1950 ETJapan Feb retail sales expected +0.5% y/y, Jan -0.4% m/m and -0.2% y/y.
EURn/aEurozone markets closed for Easter Monday.
UKn/aUK markets closed for Easter Monday.
U.S. STOCK CALENDAR03/28/2016
CompanyTickerTimeEvent DescriptionPeriodEstimate
Cal-Maine Foods IncCALM USBef-mktQ3 2016 Earnings ReleaseQ3 20160.994
Starwood Hotels & Resorts Worldwide IncHOT US10:00Extraordinary Shareholders Meeting - M&A VoteY 2016
Hill International IncHIL US11:00Q4 2015 Earnings CallQ4 2015
Cleco CorpCNL US14:00Extraordinary Shareholders MeetingY 2016
Iconix Brand Group IncICON US17:00Q4 2015 Earnings CallQ4 2015
SYNNEX CorpSNX US17:00Q1 2016 Earnings CallQ1 2016
Iconix Brand Group IncICON USAft-mktQ4 2015 Earnings ReleaseQ4 20150.263
SYNNEX CorpSNX USAft-mktQ1 2016 Earnings ReleaseQ1 20161.368
Tangoe IncTNGO USQ4 2015 Earnings ReleaseQ4 20150.035
Carbylan Therapeutics IncCBYL USQ4 2015 Earnings ReleaseQ4 2015-0.24
Posted by Jim Van Meerten at No comments:
Labels: , , , , , , , , , , , , , , , , , , ,

Thursday, March 24, 2016

MORNING CALL 3/24

MORNING CALL
OVERNIGHT MARKETS AND NEWS
Jun E-mini S&Ps (ESM16 -0.54%) are down -0.47% and European stocks are down -1.44%, as a stronger dollar undercuts commodity prices and drags down raw-material and energy producing stocks. Hawkish comments from Fed officials this week have bolstered the chance of a Fed rate hike next month and boosted the dollar and led to a sell-off in commodities. Crude oil is down -2.26% at a 1-week low, gold is down -0.41% at a 1-month low, and copper is down -0.51% at a 1-week low. Asian stocks settled lower: Japan -0.64%, Hong Kong -1.31%, China -1.63%, Taiwan -0.26%, Australia -1.13%, Singapore -1.20%, South Korea -0.47%, India closed for holiday. Losses in crude oil producers led Chinese stocks lower after PetroChina Co. posted its weakest annual profit since 1999. The yuan slipped to a 1-week low against he dollar after the PBOC lowered its reference rate for yuan by 0.33%, the most in 2-1/2 months.
The dollar index (DXY00 +0.16%) is up +0.15% at a 1-week high. EUR/USD (^EURUSD) is down -0.09% at a 1-week low. USD/JPY (^USDJPY) is up +0.23% at a 1-week high.
Jun T-note prices (ZNM16 +0.04%) are up +0.5 of a tick.
In its monthly Economic Bulletin published today, the ECB said the monetary-policy package announced this month "will exploit the synergies between the different instruments and has been calibrated to further ease financing conditions, stimulate new credit provision and thereby reinforce the momentum of the Eurozone's economic recovery and accelerate the return of inflation."
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) St. Louis Fed President James Bullard's speech on the U.S. economy and monetary policy at an even hosted by the New York Association for Business Economics, (2) weekly initial unemployment claims (expected +3,000 to 268,000, previous +7,000 to 265,000) and continuing claims (expected unch at 2.235 million, previous +8,000 to 2.235 million), (3) Feb durable goods orders (expected -3.0% and -0.3% ex-transportations, Jan +4.7% and +1.7% ex-transportation) (4) Mar Markit services PMI (expected +1.7 to 51.4, Feb -3.5 to 49.7), and (5) Mar Kansas City Fed manufacturing activity (Feb -3 to -12).
There are 4 of the Russell 1000 companies that report earnings today: Accenture (consensus $1.18), Signet Jewelers (3.63), GameStop (2.27), Carnival Corp (0.32).
U.S. IPO's scheduled to price today: none.
Equity conferences during the remainder of this week include: BB&T Capital Markets Commercial & Industrial Investors Conference on Wed-Thu.
OVERNIGHT U.S. STOCK MOVERS
Wells Fargo (WFC -1.21%) was rated a new 'Sell' at UBS With a aprice target of $45.
General Dynamics (GD -0.68%) was downgraded to 'Hold' from 'Buy' at Deutsche Bank.
Concordia Healthcare (CXRX -2.56%) reported Q4 adjusted EPS continuing operations of $1.24, below consensus of $1.30.
T-Mobile (TMUS -0.56%) was rated a new 'Buy' at FBR Captal with a price target of $40.
Dollar General (DG +0.73%) said that it will open 900 new stores in 2016 and 1,000 in 2017.
H.B. Fuller (FUL -2.26%) reported Q1 adjusted EPS of 43 cents, above consensus of 39 cents, although Q1 revenue of $474.3 million was below consensus of $477.8 million.
Sportsman's Warehouse Holdings (SPWH -1.29%) dropped 7% in after-hours trading after it said it sees fiscal year EPS of 65 cents-73 cents, below consensus of 75 cents.
Oxford Industries (OXM -2.79%) lowered guidance on fiscal year adjusted EPS to $3.75-$3.95, below consensus of $3.99.
PVH Corp. (PVH -1.53%) rose over 3% in after-hours trading after it reported Q4 adjusted EPS of $1.52, above consensus of $1.46, and said it sees Q1 adjusted EPS of $1.40-$1.45, well above consensus of $1.33.
KB Home (KBH -3.82%) rallied over 7% in after-hours trading after it reported Q1 EPS of 14 cents, higher than consensus of 11 cents.
Lannett (LCI +0.15%) lost 1% in after-hours trading after it lowered guidance on fiscal 2016 net sales to $555 million-$565 million from a prior forecast of $585 million-$595 million, below consensus of $582.2 million.
Office Depot (ODP +2.09%) climbed nearly 9% in after-hours trading after the judge handling the Federal Trade Commission’s (FTC) lawsuit to prevent Staples' planned merger with Office Depot rebuked the FTC over its legal tactics and accused them of pressuring Amazon to provide favorable testimony.
Terex (TEX -2.78%) jumped 10% in after-hours trading after it received a revised $31-a-share bid buyout offer from Zoomlion.
Vitae Pharmaceuticals (VTAE -4.27%) slipped 2% in after-hours trading after it started a secondary share offering via Piper Jaffray and BMO Capital Markets.
Reeds (REED -1.11%) slumped over 10% in after-hours trading after it reported a fiscal 2015 loss of -30 cents, a bigger loss than consensus of -28cents.
MARKET COMMENTS
Jun E-mini S&Ps (ESM16 -0.54%) this morning are down -9.50 points (-0.47%). Wednesday's closes: S&P 500 -0.64%, Dow Jones -0.453%, Nasdaq-0.79%. The S&P 500 on Wednesday closed lower on weakness in commodity and energy producers as commodity prices sold off and on hawkish comments by St. Louis Fed President Bullard who said the FOMC should consider raising interest rates at next month's meeting amid the prospects of inflation and unemployment exceeding Fed targets.
Jun 10-year T-notes (ZNM16 +0.04%) this morning are up +0.5 of a tick. Wednesday's closes: TYM6 +17.00, FVM6 +10.25. Jun T-notes on Wednesday closed higher on increased safe-haven demand for T-notes as stocks declined and on the sell-off in crude oil, which reduced inflation expectations.
The dollar index (DXY00 +0.16%) this morning is up +0.146 (+0.15%) at a 1-week high. EUR/USD (^EURUSD) is down -0.0010 (-0.09%) at a 1-week low. USD/JPY (^USDJPY) is up +0.26 (+0.23%) at a 1-week high. Wednesday's closes: Dollar Index +0.398 (+0.42%), EUR/USD -0.0036 (-0.32%), USD/JPY +0.01 (+0.01%). The dollar index on Wednesday closed higher on comments from Philadelphia Fed President Harker who said that "it is appropriate to consider every FOMC meeting live" for an interest rate hike and comments from St. Louis Fed President Bullard who said the FOMC should consider raising interest rates at next month's meeting as "I think we are going to end up overshooting on inflation" and the natural rate of unemployment.
May WTI crude (CLK16 -2.24%) this morning is down -90 cents (-2.26%) at a 1-week low and May gasoline (RBK16 -1.31%) is down -0.0182 (-1.23%). Wednesday's closes: CLK6 -1.66 (-4.00%), RBK6 -0.0428 (-2.80%). May crude and gasoline on Wednesday closed sharply lower on a stronger dollar and the +9.357 million bbl surge in weekly EIA crude inventories to a record high 532.5 million bbl (vs expectations of +2.5 million bbl). Crude oil prices received underlying support from the -1.258 million bbl decline in crude supplies at Cushing, the first decline in the last 8 weeks, and from the -0.3%decline in U.S. crude production in the week ended Mar 18 to a 16-month low of 9.038 million bpd.
GLOBAL EVENT CALENDAR03/24/2016
US0815 ETSt. Louis Fed President James Bullard speaks on the U.S. economy and monetary policy at an even hosted by the New York Association for Business Economics.
0830 ETWeekly initial unemployment claims expected +3,000 to 268,000, previous +7,000 to 265,000. Weekly continuing claims expected unch at 2.235 million, previous +8,000 to 2.235 million.
0830 ETFeb durable goods orders expected -3.0% and -0.3% ex-transportations, Jan +4.7% and +1.7% ex-transportation. Feb capital goods orders non-defense ex-aircraft expected -0.5%, Jan +3.4%.
0830 ETUSDA weekly Export Sales.
0945 ETMar Markit services PMI expected +1.7 to 51.4, Feb -3.5 to 49.7. Mar Markit composite PMI, Feb -3.2 to 50.0.
1100 ETMar Kansas City Fed manufacturing activity, Feb -3 to -12.
1100 ETTreasury announces amount of 2-year T-notes (previous $26 billion), 5-year T-notes (previous $34 billion) and 7-year T-notes (previous $28 billion) to be auctioned Mar 28-30.
GER0300 ETGerman Apr GfK consumer confidence expected unch at 9.5.
0300 ETGerman Feb import price index expected -0.2% m/m and -5.1% y/y, Jan -1.5% m/m and -3.8% y/y.
UK0530 ETUK Feb retail sales including auto fuel expected -0.7% m/m and +3.9% y/y, Jan +2.3% m/m and +5.2% y/y.
0530 ETUK Feb retail sales ex auto fuel expected -1.0% m/m and +3.5% y/y, Jan +2.3% m/m and +5.0% y/y.
0700 ETUK Mar CBI retailing reported sales expected unch at 10.
JPN1930 ETJapan Feb national CPI expected +0.3% y/y, Jan unch y/y. Feb national CPI ex-fresh food expected unch y/y, Jan unch y/y. Feb national CPI ex food & energy expected +0.8% y/y, Jan +0.7% y/y.
1930 ETJapan Mar Tokyo CPI expected unch y/y, Feb +0.1% y/y. Mar Tokyo CPI ex-fresh food expected -0.2% y/y, Feb -0.1% y/y. Mar Tokyo CPI ex food & energy expected +0.5% y/y, Feb +0.5% y/y.
1950 ETJapan Feb PPI services expected +0.2% y/y, Jan +0.2% y/y.
U.S. STOCK CALENDAR03/24/2016

CompanyTickerTimeEvent DescriptionPeriodEstimate
Accenture PLCACN USBef-mktQ2 2016 Earnings ReleaseQ2 20161.184
Signet Jewelers LtdSIG US7:00Q4 2016 Earnings ReleaseQ4 20163.629
Principal Financial Group IncPFG US8:00Roadshow - AmsterdamY 2016
Accenture PLCACN US8:00Q2 2016 Earnings CallQ2 2016
Signet Jewelers LtdSIG US8:30Q4 2016 Earnings CallQ4 2016
PVH CorpPVH US9:00Q4 2016 Earnings CallQ4 2016
Dollar General CorpDG US9:00Business Update Call
VeriFone Systems IncPAY US12:30Annual General Meeting
GameStop CorpGME US17:00Q4 2016 Earnings CallQ4 2016
GameStop CorpGME USAft-mktQ4 2016 Earnings ReleaseQ4 20162.274
Carnival CorpCCL USQ1 2016 Earnings ReleaseQ1 20160.318
Thermo Fisher Scientific IncTMO USShareholders MeetingY 2016
Posted by Jim Van Meerten at No comments:
Labels: , , , , , , , , , , , , , , , , , , ,

Wednesday, January 27, 2016

MORNING CALL 1/27

MORNING CALL
OVERNIGHT MARKETS AND NEWS
March E-mini S&Ps (ESH16 -0.51%) are down -0.67% and European stocks are down -1.04% as technology stocks slide, led by a 3% decline in Apple in pre-market trading, after it reported fewer-than-expected iPhones sold in Q1 and forecast a smaller-than-expected increase in Q2 revenue. The fall in China's Shanghai Composite to a 13-3/4 month low is also negative for stocks as is the -3.59% decline in crude oil prices that is undercutting energy producing stocks. The markets will be on edge ahead of the post-FOMC meeting statement later this afternoon. Asian stocks settled mixed: Japan +2.72%, Hong Kong +1.02%, China -0.52%, Taiwan +0.27%, Australia -1.20%, Singapore +0.02%, South Korea +1.66%, India +0.03%. China's Shanghai Composite fell to a 13-3/4 month low on economic concerns after China December industrial profits fell for a seventh month, although Japan's Nikkei Stock Index rallied up to a 1-week high and closed higher as carmakers rallied after the Nikkei newspaper reported that Toyota Motor may align with Suzuki Motor to better compete in emerging markets. Another positive sign for Japanese stocks was exchange data that showed short sales made up 43% of trading on the Tokyo Stock Exchange as of Tuesday's close, the highest this year. The last time short sales were this high was Sep 29, which marked the bottom of the market for several months.
The dollar index (DXY00 -0.37%) is down -0.35%. EUR/USD (^EURUSD) is up +0.05%. USD/JPY (^USDJPY) is down -0.12%.
Mar T-note prices (ZNH16 -0.07%) are down -2 ticks.
German Feb GfK consumer confidence was unch at 9.4, stronger than expectations of -0.1 to 9.3.
China Dec industrial profits fell -4.7% y/y, the seventh consecutive month that profits have declined.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) the outcome of the 2-day FOMC meeting that concludes today, (2) weekly MBA mortgage applications (previous +9.0% with purchase sub-index -1.6% and refi sub-index +18.7%), (3) Dec new home sales (expected +2.0% to 500,000, Nov +4.3% to 490,000), and (4) the Treasury's auction of $15 billion of 2-year floating-rate notes and $35 billion of 5-year T-notes.
There are 33 of the S&P 500 companies that report earnings today with notable reports including: Facebook (consensus $0.78), Boeing (1.37), PayPal (0.35), Discover Financial (1.30), E-Bay (0.50).
U.S. IPO's scheduled to price today: none.
Equity conferences during the remainder of this week: Cleantech Forum San Francisco on Tue-Wed, Real Estate Capital Markets 2016 Seminar on Wed.






OVERNIGHT U.S. STOCK MOVERS
Apple (AAPL +0.55%) dropped over 3% in pre-market trading after it reported shipments of 74.8 million iPhone units in Q1, short of projections of 75.5 million, and forecast Q2 revenue of $50 billion-$53 billion, below consensus of $55.5 billion.
AT&T (T +1.14%) slid nearly 2% in after-hours trading after it reported Q4 adjusted EPS of 63 cents, right on expectations, although Q4 revenue of $42.1 billion was below expectations of $42.7 billion, and new monthly subscribers rose 526,000, less than estimates of 555,000.
Stryker (SYK +1.71%) was upgraded to 'Buy' from 'Hold' at Brean Capital with a 12-month price target of $115.
Anthem (ANTM -0.66%) reported Q4 EPS of $1.14, below consensus of $1.18.
CA Technologies (CA +2.29%) climbed over 4% in after-hours trading after it reported Q3 adjusted EPS of 63 cents, higher than consensus of 58 cents.
U.S. Steel (X +12.28%) dropped over 9% in after-hours trading after it said it sees 2016 Ebitda near break-even, weaker than consensus of +$353.5 million.
Hawaiian Holdings (HA +2.31%) gained 5% in after-hours trading after it reported Q4 adjusted EPS of 85 cents, better than consensus of 84 cents, and said it sees Q1 capacity up 2.5% to 4.5%.
Ethan Allen (ETH +2.66%) climbed nearly 5% in after-hours trading after it reported Q2 adjusted EPS of 55 cents, better than consensus of 44 cents.
Capital One Financial (COF +2.93%) rose 1% in after-hours trading after it reported Q4 adjusted EPS of $1.67, higher than consensus of $1.61.
Raptor Pharmaceutical (RPTP +3.66%) surged over 15% in after-hours trading after Citigroup upgraded it to 'Buy' from 'Neutral.'
Total System Services (TSS +1.70%) slid over 4% in after-hours trading after it reported Q4 adjusted EPS continuing operations of 57 cents, below consensus of 60 cents.
Lannett (LCI +1.22%) tumbled over 10% in after-hours trading after it forecast Q2 adjusted EPS of 93 cents-95 cents, below consensus of 98 cents, and then lowered adjusted gross margins of fiscal 2016 sales to 61%-63% of net sales, below an earlier forecat of 71%-73%.
Fate Therapeutics (FATE +0.81%) soared 17% in after-hours trading after it announced FDA clearance of Investigational New Drug Application for its ProTmune for prevention of acute GvHD and CMV infection.
MARKET COMMENTS
Mar E-mini S&Ps (ESH16 -0.51%) this morning are down -12.75 points (-0.67%). Tuesday's closes: S&P 500 +1.41%, Dow Jones +1.78%, Nasdaq +0.89%. The S&P 500 index on Tuesday closed higher on strength in crude oil prices that boosted energy producing stocks and on the unexpected +1.8 point increase in U.S. Jan consumer confidence to 98.1 (stronger than expectations of unch at 96.5). Stocks were undercut by the -6.42% plunge in the Shanghai Composite to a 13-1/2 month low.
Mar 10-year T-notes (ZNH16 -0.07%) this morning are down -2 ticks. Tuesday's closes: TYH6 +8.50, FVH6 +4.75. Mar T-notes on Tuesday closed higher on the -6.42% plunge in the Shanghai Composite Index to a 13-1/2 month low, which may delay a Fed rate hike, and on carryover support from a rally in German bunds to a 4-3/4 month high. T-note prices were undercut by a rally in stocks that curbed the safe-haven demand for T-notes.
The dollar index (DXY00 -0.37%) this morning is down -0.347 (-0.35%). EUR/USD (^EURUSD) is up +0.0005 (+0.05%). USD/JPY (^USDJPY) is down-0.14 (-0.12%). Tuesday's closes: Dollar Index unch, EUR/USD +0.0021 (+0.19%), USD/JPY +0.12 (+0.10%). The dollar index on Tuesday closed little changed. The dollar was undercut by the rally in crude oil that boosted the Canadian dollar to a 3-week high against the dollar, and by long liquidation in the dollar ahead of the results of the Wed/Thu FOMC meeting that could result in a more dovish tone. The dollar found some support on the stronger-than-expected Jan U.S. consumer confidence report.
Mar crude oil (CLH16 -2.89%) this morning is down -$1.13 a barrel (-3.59%) and Mar gasoline (RBH16 -2.83%) is down -0.0388 (-3.63%). Tuesday's closes: CLH6 +0.17 (+0.56%), RBH6 -0.0090 (-0.86%). Mar crude oil and gasoline on Tuesday settled mixed. Crude oil was boosted by Iraqi Oil Minister Adel Abdul Hahdi's comment that Saudi Arabia and Russia are now more flexible about cooperating to cut crude oil output. Crude oil prices were undercut by the plunge in China's Shanghai Composite to 13-1/2 month low, a sign of economic weakness, and by expectations for Wednesday’s EIA inventory report to show U.S. crude supplies rose +4.0 million bbl.
GLOBAL EVENT CALENDAR01/27/2016
US0700 ETWeekly MBA mortgage applications, previous +9.0% with purchase sub-index -1.6% and refi sub-index +18.7%.
1000 ETDec new home sales expected +2.0% to 500,000, Nov +4.3% to 490,000.
1030 ETEIA Weekly Petroleum Status Report.
1130 ETTreasury auctions $15 billion 2-year floating-rate notes.
1300 ETTreasury auctions $35 billion 5-year T-notes.
1400 ETFOMC announces interest rate decision.
GER0200 ETGerman Feb GfK consumer confidence expected -0.1 to 9.3, Jan 9.4.
UK0200 ETUK Jan nationwide house prices expected +0.6% m/m and +4.7% y/y, Dec +0.8% m/m and +4.5% y/y.
JPN1850 ETJapan Dec retail sales expected +1.0% m/m and +0.2% y/y, Nov -2.5% m/m and -1.1% y/y.
U.S. STOCK CALENDAR01/27/2016

CompanyTickerTimeEvent DescriptionPeriodEstimate
Hess CorpHES USBef-mktQ4 2015 Earnings ReleaseQ4 2015-1.458
Boeing Co/TheBA USBef-mktQ4 2015 Earnings ReleaseQ4 20151.267
General Dynamics CorpGD USBef-mktQ4 2015 Earnings ReleaseQ4 20152.376
Progressive Corp/ThePGR USBef-mktQ4 2015 Earnings ReleaseQ4 20150.463
Progressive Corp/ThePGR USBef-mktQ4 2015 Earnings Release - December SalesQ4 20150.463
Textron IncTXT USBef-mktQ4 2015 Earnings ReleaseQ4 20150.828
United Technologies CorpUTX USBef-mktQ4 2015 Earnings ReleaseQ4 20151.521
Biogen IncBIIB USBef-mktQ4 2015 Earnings ReleaseQ4 20154.072
State Street CorpSTT USBef-mktQ4 2015 Earnings ReleaseQ4 20151.185
Rockwell Automation IncROK USBef-mktQ1 2016 Earnings ReleaseQ1 20161.328
Anthem IncANTM US6:00Q4 2015 Earnings ReleaseQ4 20151.177
EMC Corp/MAEMC US7:00Q4 2015 Earnings ReleaseQ4 20150.648
St Jude Medical IncSTJ US7:15Q4 2015 Earnings ReleaseQ4 20151.011
Illinois Tool Works IncITW US8:00Q4 2015 Earnings ReleaseQ4 20151.205
Norfolk Southern CorpNSC US8:00Q4 2015 Earnings ReleaseQ4 20151.241
Textron IncTXT US8:00Q4 2015 Earnings CallQ4 2015
St Jude Medical IncSTJ US8:00Q4 2015 Earnings CallQ4 2015
Navient CorpNAVI US8:00Q4 2015 Earnings CallQ4 2015
EMC Corp/MAEMC US8:30Q4 2015 Earnings CallQ4 2015
United Technologies CorpUTX US8:30Q4 2015 Earnings CallQ4 2015
Biogen IncBIIB US8:30Q4 2015 Earnings CallQ4 2015
Chubb LtdCB US8:30Q4 2015 Earnings CallQ4 2015
Rockwell Automation IncROK US8:30Q1 2016 Earnings CallQ1 2016
Anthem IncANTM US8:30Q4 2015 Earnings CallQ4 2015
Norfolk Southern CorpNSC US8:45Q4 2015 Earnings CallQ4 2015
CMS Energy CorpCMS US9:00Business Update Call
Walgreens Boots Alliance IncWBA US9:00Annual General MeetingY 2016
Kinder Morgan Inc/DEKMI US9:00Analyst DayY 2016
State Street CorpSTT US9:30Q4 2015 Earnings CallQ4 2015
Hess CorpHES US10:00Q4 2015 Earnings CallQ4 2015
Illinois Tool Works IncITW US10:00Q4 2015 Earnings CallQ4 2015
Boeing Co/TheBA US10:30Q4 2015 Earnings CallQ4 2015
General Dynamics CorpGD US11:30Q4 2015 Earnings CallQ4 2015
Johnson Controls IncJCI US15:00Annual General Meeting
McKesson CorpMCK US16:00Q3 2016 Earnings ReleaseQ3 20163.139
Facebook IncFB US16:00Run TLIV for Top Live Blog
Citrix Systems IncCTXS US16:05Q4 2015 Earnings ReleaseQ4 20151.192
Texas Instruments IncTXN US16:30Q4 2015 Earnings ReleaseQ4 20150.694
eBay IncEBAY US16:30Q4 2015 Earnings CallQ4 2015
QUALCOMM IncQCOM US16:45Q1 2016 Earnings CallQ1 2016
Citrix Systems IncCTXS US16:45Q4 2015 Earnings CallQ4 2015
Varian Medical Systems IncVAR US17:00Q1 2016 Earnings CallQ1 2016
Lam Research CorpLRCX US17:00Q2 2016 Earnings CallC4 2016
Vertex Pharmaceuticals IncVRTX US17:00Q4 2015 Earnings CallQ4 2015
Tractor Supply CoTSCO US17:00Q4 2015 Earnings CallQ4 2015
McKesson CorpMCK US17:00Q3 2016 Earnings CallQ3 2016
Juniper Networks IncJNPR US17:00Q4 2015 Earnings CallQ4 2015
Facebook IncFB US17:00Q4 2015 Earnings CallQ4 2015
Discover Financial ServicesDFS US17:00Q4 2015 Earnings CallQ4 2015
PayPal Holdings IncPYPL US17:00Q4 2015 Earnings CallQ4 2015
Murphy Oil CorpMUR USAft-mktQ4 2015 Earnings ReleaseQ4 2015-1.279
Varian Medical Systems IncVAR USAft-mktQ1 2016 Earnings ReleaseQ1 20160.923
Lam Research CorpLRCX USAft-mktQ2 2016 Earnings ReleaseQ2 20161.423
QUALCOMM IncQCOM USAft-mktQ1 2016 Earnings ReleaseQ1 20160.909
Vertex Pharmaceuticals IncVRTX USAft-mktQ4 2015 Earnings ReleaseQ4 20150.143
Tractor Supply CoTSCO USAft-mktQ4 2015 Earnings ReleaseQ4 20150.817
SanDisk CorpSNDK USAft-mktQ4 2015 Earnings ReleaseQ4 20150.897
SL Green Realty CorpSLG USAft-mktQ4 2015 Earnings ReleaseQ4 20151.606
United Rentals IncURI USAft-mktQ4 2015 Earnings ReleaseQ4 20152.332
Crown Castle International CorpCCI USAft-mktQ4 2015 Earnings ReleaseQ4 20151.11
eBay IncEBAY USAft-mktQ4 2015 Earnings ReleaseQ4 20150.497
Juniper Networks IncJNPR USAft-mktQ4 2015 Earnings ReleaseQ4 20150.595
Ameriprise Financial IncAMP USAft-mktQ4 2015 Earnings ReleaseQ4 20152.348
Facebook IncFB USAft-mktQ4 2015 Earnings ReleaseQ4 20150.678
Discover Financial ServicesDFS USAft-mktQ4 2015 Earnings ReleaseQ4 20151.301
PayPal Holdings IncPYPL USAft-mktQ4 2015 Earnings ReleaseQ4 20150.345
Texas Instruments IncTXN US17:30Q4 2015 Earnings CallQ4 2015
Cisco Systems IncCSCO USITC Due to Release Findings in Cisco Systems vx. Arista Networks Patent Case
Posted by Jim Van Meerten at No comments:
Labels: , , , , , , , , , , , , , , , , , , ,
Subscribe to: Posts (Atom)